Bill Gross Says Another 'Operation Twist' May Be Ahead

The video discusses potential changes in Federal Reserve policy, including the possibility of a taper tantrum due to earlier-than-expected tightening. It explores the U.S. deficit and how it is financed by central banks and market participants. The concept of Operation Twist is explained, highlighting its role in managing interest rates. The speaker shares their position on shorting Treasurys and analyzes long-term market trends, referencing historical channels and predictions for future market behavior.

What is the main reason policymakers might need to tighten policies sooner than planned?

• A potential taper tantrum

• A rise in global oil prices

• A sudden increase in inflation

• A decrease in unemployment rates

What is Operation Twist primarily aimed at achieving?

• Keeping long-term interest rates down

• Reducing the national deficit

• Boosting stock market performance

• Increasing short-term interest rates

How might Operation Twist influence the housing market?

• By increasing construction costs

• By increasing property taxes

• By reducing housing supply

• By lowering mortgage rates

What is the speaker's position on the 10-year Treasury futures?

• No position

• Short position

• Neutral position

• Long position

What historical trend is referenced in the discussion about the bond market?

• The downtrend channels starting in 1986 and 1987

• The bull market of the 1990s

• The stock market crash of 1929

• The housing bubble of 2008